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Justin Bieber has sold his rights to his songs to Hipgnosis Songs Capital for $200 million.
The company now owns the pop star’s share of his entire repertoire, which includes his biggest hits of recent years like “Baby” and “Sorry.”
Bieber, one of the most successful artists of the 21st century, joins a growing group of artists who have sold out their catalogues.
After the sale, Hipgnosis You get paid every time be transmitted one of the songs of the Canadian idol or used on radio, television or in movies.
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The company, a $1 billion deal between financial giant Blackstone and Britain’s Hipgnosis Song Management, bought Bieber’s copyright 290 songs.
He has also received his involvement in the original recordings of the songs.
This includes all your music released before December 31, 2021.
Although Hipgnosis did not disclose the terms of the agreement, a source told AFP that it had paid some U.S$200 million.
More and more artists are selling shares of their works to music funds, with the trend being more evident among older musicians.
music legends Bob Dylan and Bruce Springsteen sold theirs Catalogs to Sony in the last two years.
Springsteen received $500 million from the sale of his entire discography.
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caption,
Bruce Springsteen also sold the rights to his music.
analysis
For Sean Farrington, presenter of BBC business programs Wake up to Money and Today
Today’s rising artists may be as keen on Justin Bieber’s retirement plan as he is on his new music releases.
Bieber had two choices: get paid every time one of his hits was played, or sell the rights all at once for an astronomical sum.
The star has opted for the latter, a decision usually made by singers much older than him.
As the investor who bought the rights told me, “It gives him the freedom to use his money how he wants and it takes the risk out of his future.”
How do you get a return on that sum? Maybe the queen of music entrepreneurship, billionaire Rihanna, can give you some advice.
Songs “More Precious Than Gold”
Hipgnosis Songs Capital is a separate entity of the Hipgnosis Songs Fund, which has also built a catalog of classic hits and is inviting large institutional investors.
The latter fund has been listed on the London Stock Exchange since 2018, while Hipgnosis Songs Capital is unlisted.
The man behind both companies is Merck Mercuriadis, who claimed that music can be hit “More valuable than gold or oil”.
He called Bieber’s music “arguably the definitive soundtrack of the streaming revolution,” with 13 tracks amassing more than 1 billion streams on platforms like YouTube and Spotify.
Image copyrightReuters
caption,
Bieber in Los Angeles in December for the premiere of the series about his life.
Fall in share price
Since his audience is still relatively young, he added, the royalties will come “for 60 or 70 years.”
“The beauty of music is that when those songs become hits, they become part of our lives and live forever,” Mercuriadis told BBC Radio 4’s Today programme.
However, the price of shares in your fund has fallen more than 27% since last yearby reducing investor interest.
In December, Mercuriadis called the stock price situation a “disappointment” but said he believes in the company’s long-term viability.
“In the broader music market, people continue to listen to and pay for music despite the rising cost of living, with US audio streams surpassing the 1 trillion year mark for the first time,” he said.
“These are indicators of the continued growth we will see as revenue flows into Hipgnosis in the collections process.”
Although he was not involved in the purchase, the fund’s share price rose 1.6% after the Justin Bieber deal was announced.
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